XTrackers Stoxx Europe 600 Industrial Goods Swap UCITS ETF 1C

Issuer: Xtrackers

Asset Class: Equity

TER: 17bps

Trading Currency: GBX

Pays Income: False

Listing Date: 04 Aug 2008

Ticker: XSNR

ISIN: LU0292106084

This investment product offers targeted exposure to the European industrials sector, incorporating a specific focus on environmental, social, and governance (ESG) criteria. It aims to replicate the performance of an index comprising large and mid-cap companies from developed European countries classified within the industrials sector. The methodology includes specific ESG screening to exclude companies involved in controversial activities such as certain weapons, tobacco, and fossil fuels. Furthermore, it removes companies that fail to meet minimum ESG standards, ensuring the portfolio aligns with contemporary sustainability principles and values.

This fund is designed for investors seeking to participate in the growth of Europe's industrial core while adhering to responsible investment mandates. It is particularly suitable for those who believe in the long-term potential of sectors like machinery, transportation, aerospace, and construction services but wish to mitigate risks associated with poor ESG practices. The focused nature of the fund makes it an effective satellite holding for diversifying a broader European or global equity portfolio. It allows for tactical allocation based on an investor's view of the business cycle and the future of European industry, especially as it navigates the transition towards more sustainable and technologically advanced models.

The product provides a convenient way to gain focused exposure to a key segment of the European economy. The industrials sector is often seen as a barometer of economic health, poised to benefit from periods of expansion, infrastructure spending, and innovation. The ESG screen adds a layer of risk management, potentially avoiding companies with reputational or regulatory vulnerabilities. As a capitalising fund, all dividends from underlying holdings are automatically reinvested, which can enhance long-term returns through compounding, making it ideal for investors with a long-term horizon.